Since you want to use [`PIVOT`][1] to get the result and you need to to this dynamically, I would always suggest writing a static PIVOT query first, this allows you to get the syntax correct before trying to convert it to dynamic SQL.

The desired output shows that you want to PIVOT on two columns, `RoomNo` and `Beds` - as a result you'll need to unpivot these columns first, then apply the pivot.

Your current query is on the right track, you do need to use `row_number()` so you can get the number of rooms/beds on each floor - but your unpivot is using `Beds` and `HotelSeqID`.  You don't want to unpivot `HotelSeqID` because that doesn't have a value that you eventually want as a new column.

I'd start a static version the following way - first the subquery to get the data from your tables vertically with the `row_number()` included:

    select h.HotelName, 
      r.FloorNo,
      r.RoomNo,
      r.Beds,
      seq = row_number() over(partition by h.HotelName, r.FloorNo
                              order by r.RoomNo) 
    from dbo.Hotels h
    inner join dbo.HotelRooms r
      on h.seqid = r.hotelseqid

See [SQL Fiddle with Demo][2]. Your data will look like this with a new column that contains the sequence number based on the `HotelName` and `FloorNo`:

    |                 HOTELNAME | FLOORNO | ROOMNO | BEDS | SEQ |
    |---------------------------|---------|--------|------|-----|
    | Hotel 1                   |       1 |    101 |    1 |   1 |
    | Hotel 1                   |       1 |    102 |    2 |   2 |
    | Hotel 1                   |       1 |    103 |    1 |   3 |
    | Hotel 1                   |       1 |    104 |    2 |   4 |
    | Hotel 1                   |       2 |    201 |    1 |   1 |
    | Hotel 1                   |       2 |    202 |    2 |   2 |

Now, you can unpivot the `RoomNo` and `Beds` columns into multiple rows.  Since you are using SQL Server 2008 you can use `CROSS APPLY` to get the result.  The query will be:

    select hr.HotelName, 
      hr.FloorNo, 
      col = c.col + '_' + cast(seq as varchar(2)),
      c.val
    from
    (
      select h.HotelName, 
        r.FloorNo,
        r.RoomNo,
        r.Beds,
        seq = row_number() over(partition by h.HotelName, r.FloorNo
                                order by r.RoomNo) 
      from dbo.Hotels h
      inner join dbo.HotelRooms r
        on h.seqid = r.hotelseqid
    ) hr
    cross apply
    (
      select 'RoomNo', RoomNo union all
      select 'Beds', Beds
    ) c (col, val);

See [SQL Fiddle with Demo][3]. Your data has now been transformed into multiple columns:

    |                 HOTELNAME | FLOORNO |      COL | VAL |
    |---------------------------|---------|----------|-----|
    | Hotel 1                   |       1 | RoomNo_1 | 101 |
    | Hotel 1                   |       1 |   Beds_1 |   1 |
    | Hotel 1                   |       1 | RoomNo_2 | 102 |
    | Hotel 1                   |       1 |   Beds_2 |   2 |
    | Hotel 1                   |       1 | RoomNo_3 | 103 |
    | Hotel 1                   |       1 |   Beds_3 |   1 |
    | Hotel 1                   |       1 | RoomNo_4 | 104 |
    | Hotel 1                   |       1 |   Beds_4 |   2 |
    | Hotel 1                   |       2 | RoomNo_1 | 201 |

Finally, you can pivot to get the final result. 

    select HotelName, FloorNo,
      RoomNo_1, Beds_1, RoomNo_2, Beds_2,
      RoomNo_3, Beds_3, RoomNo_4, Beds_4
    from
    (
      select hr.HotelName, 
        hr.FloorNo, 
        col = c.col + '_' + cast(seq as varchar(2)),
        c.val
      from
      (
        select h.HotelName, 
          r.FloorNo,
          r.RoomNo,
          r.Beds,
          seq = row_number() over(partition by h.HotelName, r.FloorNo
                                  order by r.RoomNo) 
        from dbo.Hotels h
        inner join dbo.HotelRooms r
          on h.seqid = r.hotelseqid
      ) hr
      cross apply
      (
        select 'RoomNo', RoomNo union all
        select 'Beds', Beds
      ) c (col, val)
    ) d
    pivot
    (
      max(val)
      for col in (RoomNo_1, Beds_1, RoomNo_2, Beds_2,
                  RoomNo_3, Beds_3, RoomNo_4, Beds_4)
    ) piv
    order by HotelName, FloorNo;

See [SQL Fiddle with Demo][4]. Once you've tested a static version to make sure it gets your the desired result, you can easily convert this into dynamic SQL.

    DECLARE @cols AS NVARCHAR(MAX),
        @query  AS NVARCHAR(MAX)
    
    select @cols = STUFF((SELECT ',' + QUOTENAME(col + '_' + cast(seq as varchar(2))) 
                        from
                        (
                          select seq = row_number() over(partition by h.HotelName, r.FloorNo
                                                          order by r.RoomNo) 
                          from dbo.Hotels h
                          inner join dbo.HotelRooms r
                            on h.seqid = r.hotelseqid
                        ) d
                        cross apply
                        (
                          select 'RoomNo', 1 union all
                          select 'Beds', 2
                        ) c (col, so)
                        group by col, so, seq
                        order by seq, so
                FOR XML PATH(''), TYPE
                ).value('.', 'NVARCHAR(MAX)') 
            ,1,1,'')
    
    
    set @query = N'SELECT HotelName, FloorNo' + @cols + N' 
                from 
                (
                  select hr.HotelName, 
                    hr.FloorNo, 
                    col = c.col + ''_'' + cast(seq as varchar(2)),
                    c.val
                  from
                  (
                    select h.HotelName, 
                      r.FloorNo,
                      r.RoomNo,
                      r.Beds,
                      seq = row_number() over(partition by h.HotelName, r.FloorNo
                                              order by r.RoomNo) 
                    from dbo.Hotels h
                    inner join dbo.HotelRooms r
                      on h.seqid = r.hotelseqid
                  ) hr
                  cross apply
                  (
                    select ''RoomNo'', RoomNo union all
                    select ''Beds'', Beds
                  ) c (col, val)
                ) x
                pivot 
                (
                    max(val)
                    for col in (' + @cols + N')
                ) p 
                order by HotelName, FloorNo'
    
    exec sp_executesql @query

See [SQL Fiddle with Demo][5].  This query will give you the result:

    |                 HOTELNAME | ROOMNO_1 | BEDS_1 | ROOMNO_2 | BEDS_2 | ROOMNO_3 | BEDS_3 | ROOMNO_4 | BEDS_4 | ROOMNO_5 | BEDS_5 | ROOMNO_6 | BEDS_6 |
    |---------------------------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
    | Hotel 1                   |        1 |      1 |      102 |      2 |      103 |      1 |      104 |      2 |   (null) | (null) |   (null) | (null) |
    | Hotel 1                   |        2 |      1 |      202 |      2 |      203 |      1 |      204 |      2 |      205 |      1 |      206 |      2 |
    | Hotel 2                   |        1 |      2 |      102 |      6 |   (null) | (null) |   (null) | (null) |   (null) | (null) |   (null) | (null) |
    | Hotel 2                   |        2 |      3 |      202 |      7 |   (null) | (null) |   (null) | (null) |   (null) | (null) |   (null) | (null) |

 


  [1]: http://msdn.microsoft.com/en-us/library/ms177410%28v=sql.105%29.aspx
  [2]: http://sqlfiddle.com/#!3/80685/2/0
  [3]: http://sqlfiddle.com/#!3/80685/3/0
  [4]: http://sqlfiddle.com/#!3/80685/4/0
  [5]: http://sqlfiddle.com/#!3/80685/7/0